Is drop shipping halal?

[Muslimah247]

Dear brothers and sisters,

I have thought about making extra income by selling from an online store to a supplier that will deliver them and I just wanted to know if this is permissible or not, I am already a freelancer who writes blogs and articles but I wanted to make extra money. Some fatwas from Islamic websites say it’s permissible others say it isn’t. Could you please confirm if it’s allowed or not?

[wealthbuilder]

Dear brothers and sisters,

I have thought about making extra income by selling from an online store to a supplier that will deliver them and I just wanted to know if this is permissible or not, I am already a freelancer who writes blogs and articles but I wanted to make extra money. Some fatwas from Islamic websites say its permissible others say it isn’t. Could you please confirm if it’s allowed or not?

Assalamualaikum

There are two methods of drop shipping

1. You list the product on your website and someone places the order. You do not possess the product. But when the customer pays you, only then you buy the product and give it to the customer. This kind of transaction is not permissible. As there is a hadith that says "Do not sell the product which you do not own."

2. Here you act as an agent of the company. Where you list the products of the company and do marketing for that. The customer buys the product on your website and the company delivers the product to the customer. And you get a certain percentage of profit from the sales. This kind of transaction is permissible.